Lead Financial Services Reports Mixed Q2 Results: Profit Drops 88% QoQ, Loan Portfolio Expands

2 min read Updated on 14 Nov 2025, 07:36 PM

Reviewed by

Naman SharmaScanX News Team

Overview

Lead Financial Services, an NBFC, reported a sharp 88% decline in Q2 FY2026 profit to Rs. 1.14 lakhs. However, half-yearly profit increased by 25.8% to Rs. 9.56 lakhs. The loan portfolio expanded by 20.2% to Rs. 764.50 lakhs, while cash and cash equivalents decreased significantly to Rs. 2.16 lakhs. Total assets grew slightly to Rs. 1,072.71 lakhs, and total equity increased to Rs. 617.93 lakhs.

*this image is generated using AI for illustrative purposes only.

Lead Financial Services Limited , a non-banking financial company (NBFC), has released its unaudited financial results for the second quarter and half-year ended September 30, 2025, revealing a mixed performance with significant changes in key financial metrics.

Quarterly Performance

The company reported a sharp decline in its quarterly profit after tax, which fell to Rs. 1.14 lakhs in Q2 FY2026, down 88% from Rs. 9.43 lakhs in the previous quarter. This substantial decrease in profitability may raise concerns among investors about the company's short-term financial health.

Half-Year Results

Despite the weak quarterly performance, Lead Financial Services showed improvement in its half-yearly results. The profit after tax for the first six months of FY2026 increased to Rs. 9.56 lakhs, up from Rs. 7.60 lakhs in the corresponding period of the previous year, marking a 25.8% year-on-year growth.

Loan Portfolio Expansion

A notable highlight from the financial results is the significant expansion of the company's loan portfolio. As of September 30, 2025, the loan book stood at Rs. 764.50 lakhs, representing a 20.2% increase from Rs. 635.95 lakhs reported at the end of the previous financial year (March 31, 2025).

Cash Position

The company's cash position has seen a dramatic decline, with cash and cash equivalents dropping to Rs. 2.16 lakhs as of September 30, 2025, compared to Rs. 121.73 lakhs at the end of the previous financial year. This significant reduction in liquidity may be attributed to the expansion of the loan portfolio and warrants attention from stakeholders.

Financial Position Overview

Particulars (in Rs. Lakhs)	As of Sept 30, 2025	As of March 31, 2025	Change (%)
Cash & Cash Equivalents	2.16	121.73	-98.2%
Loans	764.50	635.95	+20.2%
Total Assets	1,072.71	1,060.83	+1.1%
Total Equity	617.93	607.27	+1.8%

Income Statement Highlights

For the half-year ended September 30, 2025:

Total Revenue: Rs. 32.48 lakhs
Operating Profit: Rs. 12.89 lakhs
Net Profit: Rs. 9.56 lakhs

Conclusion

Lead Financial Services Limited's Q2 FY2026 results present a mixed picture. While the quarterly profit has seen a sharp decline, the half-yearly performance shows improvement. The substantial growth in the loan portfolio indicates an aggressive lending strategy, which could drive future growth but also carries inherent risks. Investors and stakeholders will likely be watching closely to see how the company manages its expanded loan book and improves its profitability in the coming quarters.

Note: All financial figures are based on unaudited results as reported by the company for the quarter and half-year ended September 30, 2025.

Historical Stock Returns for Lead Financial Services